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Economy News, Latest Economic News Today | The HinduBusinessLine

Cabinet clears tech-driven overhaul of PDS; extends SARTHAK Scheme with ₹25,530 crore outlay Delhi–San Francisco Air India flight turns back after technical snag Natural rubber production posts 3.4% growth in FY26 India’s oilmeal exports decline 13% amid Red Sea shipping disruptions India rice exports decline as Iran war curbs basmati shipments to Gulf Iran frees Indian seafarers held in diesel smuggling case India better positioned in South-East Asia to offer RE for data centres: Moody’s Ratings Regaal Resources expands maize processing facility in Bihar Monsoon arrives over Lanka, clears last hurdle before reaching Kerala Railways Ministry clears hydrogen fuel cell DEMU for Jind-Sonipat route Air India to cut 22% domestic flights amid high fuel prices INS Kolkata thwarts suspected piracy attack near merchant vessel MV Mashallah 1 Woodfield to export India’s first LNG marine loading arm from facility near Mumbai 'India's agri sector-food industry must adapt to withstand climate impacts' Adnoc exports another LNG shipment through Hormuz to India Aequs Q4FY26 results: higher revenue, wider losses amid listing costs CBSE’s new digital evaluation sparks confusion, students raise concerns CBSE’s new digital evaluation sparks confusion, students raise concerns China rejects Indian rice consignments on alleged GMO presence, again Smoke detected on IndiGo flight at Bengaluru airport; passengers evacuated safely Hike in fuel prices to squeeze cement cos profit Bayer CropScience Q4 Results: Net up 13% at ₹162 crore on higher revenues Quad announces initiative on Indo-Pacific energy security amid West Asia disruptions Inflation targeting framework should have included ‘exchange rate stability’ clause: Former RBI Governor Subbarao TVS Supply Chain bets on India freight rebound, Europe turnaround to drive FY27 growth Indian cotton body projects 7% increase in crop area this year Regional airlines tighten non-fuel expenses, reduce flights India to host regenerative agriculture conference on food security and climate resilience Air India expands loyalty programme, brings AI Express flights in fold Quad counters China with $20 b minerals framework, slams Iran’s Hormuz toll India’s gherkin exports hit record high $307 million in FY26 despite US tariffs India’s area under summer crops up 3%, but paddy and moong acreage dips Hike in fuel prices to squeeze cement cos profit IBC 2.0 takes effect as MCA notifies major insolvency reforms Fuel price hikes may push India’s retail inflation to 5% by June Experts call for import curbs and tax reforms amid West Asia crisis India, Canada looking at concluding trade pact talks by year end Centre forms panel on demographic change linked to illegal immigration Andhra govt begins Ebola screening at Vijayawada airport India ethanol push drives big rise in land farmed to make fuel Quad slams Iran’s Hormuz tolls; unveils critical minerals framework at Delhi Meet BluJ Aerospace unveils Gen #2 aircraft UPL gets approval for Bioclassic in India Banning a pesticide will not stop farmer suicides: CropLife India KVIC targets Rs 2.51 lakh crore business in FY27 amid khadi growth India cancels soymeal export deals, turns to African soybean imports, sources say Diesel rationing hits truck movement, slows cargo across ports, industrial corridors Quad to mobilise $20 bn to strengthen critical minerals supply chain RE project awarded to SPV of InvIT via competitive bidding is a PPP project: SEBI Share of petroleum products in total exports slipped to 8.8% in FY26, the lowest in over 10 years Rajasthan govt, Wadhwani AI sign MoU to deploy AI solutions in state’s agri ecosystem Brewing storm over Bay may delay classical monsoon onset in Kerala FACT hikes fertilizer prices, here's what getting costlier India, US strike critical minerals deal amid China concerns India prepares interim, not final, report as Air India crash anniversary nears, source says India’s trucking sector faces crisis amid diesel price hikes and fuel shortages India, Canada aim to conclude CEPA by year-end; triple trade by 2030: Piyush Goyal CNG prices raised by ₹2/kg in Delhi, fourth hike in 15 days TVS Supply Chain Solutions reports consolidated PAT of ₹18 crore in Q4FY26 Govt expands Ebola vigil, all incoming passengers to be screened Govt expands Ebola vigil, all incoming passengers to be screened Challenges to the economy are more externally driven: FM Par panel members grill oil ministry officials over 'shortage' of petrol, LPG No blanket extension on ALMM for solar PV cells beyond June 1: MNRE Petrol above ₹100 drives shift towards EVs and fuel-efficient vehicles New Delhi to host Quad meet on Tuesday amid West Asia turmoil Air India Express aircraft damages runway lights in Muscat DP World’s Mundra terminal could increase India’s GDP by $9.2 billion by 2035: Oxford Economics study US hopes to clinch trade deal soon but India wants tariff clarity West Asia crisis likely to push fertilizer subsidy beyond ₹3 lakh crore in FY27 PE, VC investments halve to $2.7 billion in April Tamil Nadu announces crop loan waiver for 14.22 lakh farmers Skye Air targets US entry by 2028, bets on D2C growth at home Centre seeks solution as State bans on bio-fertilizer sales hit PMKSK model Telangana to procure jowar, sunflower at MSP DP World’s Mundra terminal could increase India’s GDP by $9.2 billion by 2035: Oxford Economics study P Jawahar takes charge as MPEDA Chairman Fertiliser subsidy expected to exceed ₹3 lakh crore in FY27 if geopolitical tensions continue Air India opens first overseas Maharaja Lounge at San Francisco airport Ashok Leyland, VRL Logistics deepen partnership with order for 715 vehicles Centre loses Rs 14,000 crore after petrol, diesel excise duty cut Railway parcel workers await medical facilities despite repeated appeals ONGC on-boards BP subsidiary as technical services provider to enhance production from western offshore Adequate availability of fertilisers for upcoming Kharif sowing season: Government State-owned fuel retailers losing nearly ₹600 crore daily despite price hikes IRFC signs ₹13,527 cr refinancing deal for Hyderabad Metro to support expansion and cut debt costs Tea prices drop at Coonoor auctions amid cautious buying DP World Mundra terminal may drive $9.2 billion GDP boost by 2035: Oxford Economics report IIT Madras launches maritime research facility with ₹4.5 crore in CSR funding from Mazagon Dock Shipbuilders West Asia Conflict: Austerity measures to impact diesel, petrol demand growth Global business growth halts in May amid West Asia conflict; Europe hit hardest: S&P Global Strait of Hormuz disruption boost bunkering business at Cochin Port German firm B+H Solutions to invest 1 million euros in India to push nano-fertiliser growth BioPrime inks commercial pact with Mosaic Co to integrate biological innovations into crop nutrition IMD Alert: Monsoon onset over Kerala expected on May 26, ±4 days Akasa Air adds flights while Iran war crimps rivals Premium spending is soaring, while mass consumption stays uneven: Kotak MF report PVV Infra eyes 13 wayside amenities projects on national highways Parliamentary panel to discuss impact of West Asia crisis on India's maritime trade Pune-based BioPrime in pact with US’ Mosaic to incorporate its biological components
Signs of El Niño emergence by June, says Australian Met body
2026-05-26 · via Economy News, Latest Economic News Today | The HinduBusinessLine
In the past, El Nino events have led to either late arrival of the south-west monsoon in India or deficient rain

In the past, El Nino events have led to either late arrival of the south-west monsoon in India or deficient rain | Photo Credit: MUSTAFAH KK

The El Niño–Southern Oscillation (ENSO) is showing clear signs of shifting towards El Niño, with rapid warming in the tropical Pacific and supportive sub-surface conditions, though it is neutral currently.

All climate models indicate sea surface temperatures could cross El Niño thresholds by June (early winter), although atmospheric indicators are yet to fully align with an established El Niño event, according to Australia’s Bureau of Meteorology’s southern hemisphere monitoring report.

Uncertainty over strength

There remains some uncertainty as to the likely strength of the El Niño event. Models indicate this will be at least a moderate strength, with a potential for a strong event, depending on the amount of warming in the central tropical Pacific.

“Atmospheric indicators, including trade winds, pressure and cloud patterns in the tropical Pacific, are consistent with ENSO-neutral conditions but are also trending towards an El Niño state,” the report said.

Monsoon risk

In the past, El Nino events have led to either late arrival of the South-West Monsoon in India or deficient rain, besides prolonged dry spells. The India Meteorological Department (IMD) has predicted that it would be a below-normal monsoon this year, with the rainfall being 92 per cent of the long-period average.

Earlier this week, the IMD said the South-West Monsoon has lost its vigour, while a brewing storm may delay its onset over the Kerala coast. IMD had predicted the monsoon to set in on May 26.

In 2023, El Nino broke out in June and lasted for 11 months, affecting the Indian monsoon. It also resulted in 2024 being the warmest on record, as it continued until April 2024. It resulted in foodgrain crops, particularly paddy and pulses, being affected, leading to lower production. It also led to food inflation.

The Madden–Julian Oscillation is located in the Western Pacific, and model forecasts suggest it is likely to strengthen and continue propagating eastward into the Western Hemisphere during late May and early June. Such an event would also be associated with westerly wind anomalies over the western Pacific, which could further warm the tropical Pacific and reinforce the development of El Niño.

The Indian Ocean Dipole (IOD) is now neutral. The IOD index is -0.34°C (24 May 2026). The forecast state of the IOD is uncertain.

IOD outlook

The majority of models indicate the IOD is likely to remain neutral at least until early winter, with a positive IOD event possible in winter-spring (September). Model forecasts reveal a great deal of variability in the timing and magnitude of this potential event.

The Indian Ocean Dipole is a climate phenomenon that affects the Indian Ocean. In a positive phase, warm waters are pushed to the western part of the Indian Ocean. Cold deep waters are pushed up in the Eastern Indian Ocean. The pattern is reversed in the negative phase of the IOD.

Warm waters

The week ending 24 May 2026 sea surface temperature (SST) analysis shows waters are near average around much of Australia, except for the southeast and southwest, where SSTs are above average. Coastal waters of New South Wales and eastern Tasmania are particularly warm (about 3 to 4°C above average), the report added.

Published on May 26, 2026